Filing For Bankruptcy in Canada

How to File for Bankruptcy in Canada

• Having a tremendous amount of debt can cause stress and anxiety. You have mountains of credit card debt, a mortgage, car loans and personal loans, and no end in sight. You keep getting further behind on your bills, and your credit score continues to drop. As a last resort, you might be forced to file for bankruptcy. The proceeding can help you start over financially.

How to Qualify

• In order to file, you must live or work in Canada, and you must have at least $1,000 in debt. You also must not be able to meet your financial obligations.

How to Qualify

• The debts that can be discharged in the proceedings include student loans, credit card bills and any unsecured loans. You can not eliminate your child support payments, alimony or court fines.

How to File

• If you wish to file, you must contact a trustee approved by the government and arrange a meeting. When attending the meeting, you need to bring bank statements, information about your assets and information about any debts you owe.

How to File

• The trustee will have you complete the necessary paperwork, and he will file the package. You will need to list the names and addresses of all your creditors.

Title

• You will also be required to attend and finish two credit counseling sessions. Your creditors might want to schedule a meeting with you, and you will be required to attend those. Your creditors will ask you numerous questions, and you need to answer them honestly. In addition, you are required to attend a discharge hearing. After your information is reviews, you will be approved for the proceedings. The process can take up to a year to complete. Once you are approved, your debts will be eliminated.

Advantages of Filing

• Filing for the elimination of your debts can eliminate harassing calls from you creditors. Once you are in proceedings, your creditors are forbidden to make harassing or threatening phone calls. If you have uncontrollable debt, this allows you to start fresh.

Advantages of Filing

• In addition, if you are having your wages garnished, filing can put a stop to that. If you need more information about how the process works, you can find numerous social media sites that address the issue.

Disadvantages of Filing

• The biggest disadvantage of filing is that it will appear on your credit report for six years. This could prevent you from getting new loans or new credit. If you are able to obtain a new loan, the interest rate will be much higher because you have a history of bankruptcy. In addition, you might be required to give up some of your assets to pay your creditors.

How Much Does it Cost?

• You will probably be required to pay trustee fees, filing fees and counseling fees. The trustee will usually be paid from the liquidation of your assets. If you hire an attorney, you will be required to pay him a fee.

• If you cannot manage your debt, bankruptcy might be the only solution to your problem. It can help get you back on your feet again, so you can start over. Hopefully, you will learn from your mistakes, and you will make better financial decisions in the future.

Further Reading…

• Kevin Thatcher & Associates Ltd. your trustee in bankruptcy. Visit us today at http://billfixer.com/ to learn more, and let us help you get your financial life back on track.